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New data from the MFAA has shown that mortgage broker market share is now greater than ever before.
New data from the Mortgage & Finance Association of Australia (MFAA) has revealed a record 76.0 per cent of all new home loans were written by mortgage brokers in the three months to December 2024.
This figure surpassed the previous record of 74.6 per cent set during the September 2024 quarter.
The data, compiled by Comparator by calculating the value of loans settled by the leading brokers and aggregators as a percentage of ABS Housing Finance commitments, showed mortgage broker market share has risen by 4.2 percentage points from the December 2023 quarter (71.8 per cent).
Meanwhile, the value of residential home loans settled by brokers during the December 2024 quarter hit $115.06 billion, the highest value reported to date within a single quarter.
This figure represented a 22 per cent increase in settlement volumes compared to the December 2023 quarter ($94.06 billion).
Anja Pannek, MFAA CEO, commented on the results, noting they referred to a period prior to the Reserve Bank of Australia’s decision to cut the cash rate.
“We have seen even more Australians reaching out to their mortgage brokers in uncertain economic conditions,” Pannek said.
“We know this is driven by a broad range of reasons, such as understanding when and how to refinance or opportunities to seek a better rate on their existing mortgage.
“Brokers also assist clients to understand their financial position and get ‘finance ready’, prepare for lending approval, and navigate government schemes to achieve the goal of buying their first home. The breadth of assistance brokers offer is significant and valuable.”
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The latest broker market share data comes after the industry body released a new piece of research highlighting the value of the third-party channel.
Released in February, the 52-page Value of Mortgage and Finance Broking 2025 report found mortgage and finance brokers contributed $4.1 billion in gross value added to the Australian economy each year ($3.3 billion in direct value and $800 million in indirect value).
“Brokers are doing an excellent job of serving their clients – the report showed that 72 per cent of all broker business comes from repeat clients and referrals,” Pannek added.
Pannek also commented on the impact of the introduction of the mortgage brokers’ best interests duty (BID) regarding client trust.
“Deloitte’s research has further examined how the introduction of BID has led to increased consumer confidence in the mortgage broker sector,” she said.
“The Value of Mortgage and Finance Broking Report showed how much brokers have embraced BID, with brokers saying overwhelmingly it had improved trust in the sector.”
[Related: Brokers writing record 74.6% of home loans]
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